new high for nse, page-14

"calculating income on a single hole for each project is misleading"

hi geo

company presentations based on inflated gas prices using optimum scenarios are also misleading. that is why i like to do my own analysis on the fly.

assessing what is to be expected over the coming six months is critical to knowing what price serious investors will be looking to pay for NSE. when you iron out all the wrinkles left by traders, investors are what dictate the shareprice.

there will certainly be extra wells near W2 if it flows. but it is pretty obvious that they will not be netting enough from Y1, W1 and W2 to fund any further drilling this year. which means as an investor, i like to know what kind of market cap we can reasonably expect before the board come cap in hand to the shareholders.

the maths i used are based on a 32 or 36% stake of a 33% return at 400mcfd, 3mmcfd, and 200bopd. knowing that with even these numbers we can validate a market cap of over $70mill means that a shareprice of 50c is achievable by the end of this wilcox campaign

that means that the board could feasibly approach investors for a further $20mill for only 40mill more shares, barely diluting the company and keeping the market cap entirely realistic.

in this scenario, with $20mill the canning would open right up, and we'd be on our way to becoming a monster of a company with still less than 200mill shares.